ACA Affordability Calculator

Check if employer coverage counts as affordable under ACA rules for 2025 or 2026.

How It Works

Hey, let’s break this down step by step. First, pick your tax year—2025 uses 9.02% of household income as the cap for self-only premiums. For 2026, it jumps to 9.96%. Enter your annual household income, then your monthly premium costs for self or family coverage.

If you’re hourly, add weekly hours so we compute your pay rate right. Safe harbors like W-2 or federal poverty line can make coverage count as affordable even if the standard test fails. Hit calculate, and you’ll see if you qualify for Marketplace subsidies or if employers face penalties.

Real Examples

• Worker earns $50,000/year, pays $120/month for self-only in 2026. That’s 2.88%—affordable, no subsidies needed.
• Family premium hits $600/month on same income? 14.4%—family glitch fixed, so dependents can get Marketplace help.
• Hourly at $20/hr, 30 hours/week: Monthly income ~$2,600. Self premium under $258 (9.96%) passes rate-of-pay harbor.

Plan Comparison

| Coverage Type | 2025 Max Monthly Premium | 2026 Max Monthly Premium | Subsidy Eligible? | |—————|—————————|—————————|——————-| | Self-Only | 9.02% of income | 9.96% of income | If over threshold | | Family | No direct cap | No direct cap | Often yes post-glitch | | W-2 Harbor | Fixed low rate | 9.12% safe harbor | Less likely |

Common Questions

Does family coverage affect my self-only test? Nope—affordability checks self-only first. But if family costs too much, dependents might still grab subsidies now that the glitch is gone.

What if income changes mid-year? Recalculate here anytime. Report big shifts to the Marketplace to adjust advance credits right away.

Employers: Penalty risks? If unaffordable for full-timers, $500/month per employee under 4980H(b). Use safe harbors to stay safe.

Mistakes to Avoid

• Forgetting hours/week for hourly pay—leads to wrong monthly income.
• Ignoring safe harbors—W-2 box 12 often shows lower income, passing easier.
• Mixing annual premium with monthly—always use monthly employee share.

References

• Internal Revenue Service. Affordable Care Act Tax Provisions. Minimum value and affordability regulations under Section 4980H. Available at irs.gov.
• U.S. Department of Health and Human Services. Final Rule on Family Glitch Fix, 87 FR 872, January 4, 2022.
• Healthinsurance.org. Employer Health Plan Affordability Analysis, updated for 2026 thresholds.
• Caravus. ACA Affordability Percentages for Applicable Large Employers, 2025-2026 guidance.